The recent world economic crisis showed very clearly that financial crises and sovereign
defaults are severe threats to economic and social prosperity. In addition it became apparent
that currency crises and banking crises often occur together and are closely related to
sovereign debt crises and defaults. The present book contains new research on various important
issues related to financial crises and sovereign default risk by leading experts in the field.
The book discusses new modelling approaches to financial crises defaults and their
interdependencies. It also sheds light on the consequences of different sorts of crises for the
trust in the institutions which are concerned with managing them. Moreover it provides
discussions of several institutional features of the EMU and the world financial system and in
particular the risks inherent in these institutions. The book also includes interesting
suggestions for solving crises and improving financial stability.
